Last checked at 30 Nov 2009 07:00
GOLDSTONE RESOURCES LIMITED
("GoldStone" or "the Company")
Interim Results for the period ended 31 August 2009
Chief Executive's Report
A review of GoldStone's activities during the six months ended 31 August 2009, which incorporates an update on the current status of the Company's projects, is set out below:
GOLD
The Company has increasingly been focusing on gold in West Africa because of the region's proven gold prospectivity. During the past two months the Company has concluded two joint ventures in Ghana and acquired a prospecting permit in Senegal.
Ghana - Homase and Manso Amenfi
The Company has entered into two joint venture agreements with Ghanaian companies with respect to properties at different stages of exploration development.
The Homase Joint Venture property is located in close proximity to Anglo Gold Ashanti's Obuasi mine and was explored during the period from 1999 to 2003 and mined by Anglo Gold Ashanti in 2002/2003 when the gold price averaged approximately US$300 per ounce. The mineralisation in the Homase and Obuasi mine areas appear to be controlled by the same geological structure. The Directors believe a code compliant gold resource, based on historical drill data, may be definable on the Homase Joint Venture property. In addition untested mineralisation seems to extend below the known part of the gold deposit. The Joint Venture agreement allows the Company to earn a majority interest of 51% after spending a minimum of US$700,000 and up to an 85% interest after completion of a bankable feasibility study.
As announced on 23 November 2009, the Manso Amenfi Joint Venture entitles the Company to acquire a majority interest of 55% after spending a minimum of US$700,000 or upon obtaining a code compliant resource of any magnitude. The Company may acquire an interest of up to 85% in the project upon completion of a successful bankable feasibility study. The property shows "brown fields" potential due to its proximity to Golden Star Resources's Bogoso processing plant and also of interest are two large gold in soil anomalies identified by previous explorers.
Senegal - Sangola
The Company has been granted a Permis de Recherche over Sangola which is a 471 square kilometre prospect situated in the south-east of Senegal. The Company will be able to commence exploration activities as soon as the necessary decree is issued by the Mining Minister which is expected to occur shortly. The license area is largely unexplored and covers the southern part of the Main Transcurrent Fault Zone of the Kenieba Inlier of the Birimian Formation. Exploration in this area has yielded more than 20 million ounces of gold.
Mali - Baroya, Metedia-Est and Yatia
GoldStone was granted an Autorisation d'Exploration for Baroya and Metedia-Est in June 2008. This licence allowed the Company to evaluate the potential of the permit areas for a period of three months. The Autorisation d'Exploration included the exclusive right to apply for long term prospecting licences over Baroya and Metedia-Est within the three month period. After GoldStone received results from its evaluative exploration it elected to exercise its exclusive right to apply for the two prospecting licences and applied to the Malian Department of Mines and Geology ("DNGM") for a Permis de Recherche over Baroya and Metedia-Est during August 2008. In addition the Company applied for a Permis de Recherche over Yatia, which is adjacent to Baroya and Metedia-Est.
The Baroya, Metedia-Est and Yatia permit areas are within eight kilometres of the Tabakoto/Segala gold mine, which was recently re-commissioned by Avion Resources.
The Company has not received a conclusive answer from the DNGM regarding the progress of its application for a Permis de Recherche and will make an announcement in due course.
India - Karnataka
The Company filed an application for a prospecting licence in Karnataka for gold and associated minerals (including uranium) during June 2008. The Company is waiting to receive a response from the Karnataka Department of Mines and Geology regarding this application.
BAUXITE
On 2 June 2009 GoldStone was informed by the Guyana Geology and Mines Commission ("GGMC") that it had approved the granting of eight prospecting licences in Kopinang. The GGMC requires that GoldStone pays the yearly rental fee of approximately US$9,800 and that it posts work performance bonds to the amount of US$66,000 before the licences are executed. The Company has decided to delay payment of the required fees and bonds in view of the current economic climate, its cash resources and the apparent lack of interest from bauxite industry participants.
GEOQUEST DIVESTMENT
Any future acquisition by GoldStone of an interest in exploration and/or mining opportunities in the Southern African Development Community ("SADC") will only become effective if the requirements of the South African Reserve Bank are met. In terms of these requirements, GoldStone may only acquire an interest in assets in the SADC if GeoQuest Holdings Ltd ("GeoQuest"), which is a major shareholder in GoldStone, has divested of its interest in the Company. The Company has recently been informed by the board of GeoQuest that it intends to seek the requisite shareholder approval shortly to divest of its interest in Goldstone.
OUTLOOK
After a successful campaign of investigating, applying for and acquiring prospective gold exploration projects during the past few months, the Directors intend to shift their attention to building shareholder value by target driven exploration. The Company will also file applications in Gabon with the aim of adding further grassroots potential to its current exploration portfolio. GoldStone currently has cash resources of approximately US$850,000, most of which will be utilised towards its immediate exploration requirements on current prospects. The Directors expect that the Company will have to raise funds in order to advance its projects further.
APPROVAL
Dr. Hendrik Schloemann, who holds a PhD in geochemistry, has reviewed and approved the content of this announcement.
Jurie Wessels
Chief Executive Officer
27 November 2009
Change of Adviser Name
The Company also announces that with effect from 26 November 2009 its Nominated Adviser and Broker has changed its name from Hanson Westhouse Limited to Westhouse Securities Limited.
| GoldStone Resources Ltd | +27 21 551 9009 |
| Jurie Wessels (Chief Executive Officer) | |
| | |
| Westhouse Securities Limited | +44 113 246 2610 |
| Tim Feather / Matthew Johnson | |
| CONDENSED STATEMENT OF OPERATIONS | |||
| Six months ended 31 August 2009 | Year ended 28 February 2009 | Six months ended 31 August 2008 | |
| US$ | US$ | US$ | |
| Turnover | |||
| Interest Receivable | 686 | 42,983 | 32,031 |
| 686 | 42,983 | 32,031 | |
| Exploration expenses-continuing | (22,598) | (145,189) | (74,266) |
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|
| |
| Gross loss | (21,912) | (102,206) | (42,235) |
| Other operating expenses | (220,824) | (1,008,444) | (508,350) |
| Operating loss for the financial period | (242,736) | (1,110,650) | (550,585) |
| Loss for the financial period | (242,736) | (1,110,650) | (550,585) |
| Loss per ordinary share | |||
| Basic - cents per share | (0.2) | (0.8) | (0.4) |
| CONDENSED BALANCE SHEET | |||
|
| |||
| 31 August 2009 | 28 February 2009 | 31 August 2008 | |
| US$ | US$ | US$ | |
| FIXED ASSETS | |||
| Tangible assets | 15,605 | 12,026 | 19,095 |
| Other Assets | - | - | 30,000 |
| CURRENT ASSETS | |||
| Debtors and prepayments | - | 19,195 | 19,195 |
| Cash at bank | 1,007,932 | 1,233,834 | 1,771,856 |
| 1,007,932 | 1,253,029 | 1,791,051 | |
| CREDITORS | |||
| Amounts falling due within one year | |||
| Creditors and accruals | (42,784) | (41,566) | (56,591) |
| (42,784) | (41,566) | (56,591) | |
| Net current assets | 965,148 | 1,211,463 | 1,734,460 |
| TOTAL ASSETS | 980,753 | 1,223,489 | 1,783,555 |
| CAPITAL AND RESERVES | |||
| Share capital | 2,354,482 | 2,354,482 | 2,354,482 |
| Share premium | 13,849,554 | 13,849,554 | 13,849,554 |
| Capital contribution reserve | 555,110 | 555,110 | 555,110 |
| Accumulated deficit | (15,778,393) | (15,535,657) | (14,975,591) |
| SHAREHOLDERS FUNDS | 980,753 | 1,223,489 | 1,783,555 |
| CONDENSED STATEMENT OF CHANGES IN EQUITY For the six month period ended 31 August 2009 | |||
| Six months ended 31 August 2009 | Year ended 29 February 2009 | Six months ended 31 August 2008 | |
| US$ | US$ | US$ | |
| Share Capital - GBP0.01 par value | |||
| Authorised - 250,000,000 shares | |||
| Issued and fully paid up 130,816,663 | 2,354,482 | 2,354,482 | 2,354,482 |
| Share premium | 13,849,554 | 13,849,554 | 13,849,554 |
| Capital contribution reserve | 555,110 | 555,110 | 555,110 |
| Accumulated deficit | |||
| Balance at beginning of year | (15,535,657) | (14,425,007) | (14,425,007) |
| Net loss | (242,736) | (1,110,650) | (550,584) |
| Balance at end of year | (15,778,393) | (15,535,657) | (14,975,591) |
| 980,753 | 1,223,489 | 1,783,555 | |
| CONDENSED CASH FLOW STATEMENT | |||
| Six months ended 31 August 2009 | Year ended 28 Feb 2009 | Six months ended 31 August 2008 | |
| US$ | US$ | US$ | |
| Loss for period | (242,736) | (1,110,650) | (550,584) |
| Adjusted for: | |||
| Depreciation | 6,828 | 16,018 | 6,340 |
| Interest Received | (686) | (42,983) | (32,031) |
| Decrease in Debtors | 19,195 | - | - |
| Increase/Decrease in Creditors | 1,218 | (953) | 14,072 |
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| |
| Net cash outflow from operating activities | (216,181) | (1,138,568) | (562,203) |
| Returns on investment and servicing finance | |||
| Interest received | 686 | 42,983 | 32,031 |
| Deposit paid | - | - | (30,000 ) |
| Purchase of Fixed Assets | (10,407) | (7,028) | (4,419) |
| - | - | ||
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|
| |
| Decrease in cash | (225,902) | (1,102,613) | (564,591) |
| Cash at beginning of period | 1,233,834 | 2,336,447 | 2,336,447 |
| Cash at end of period | 1,007,932 | 1,233,834 | 1,771,856 |
| NOTE | |
| Earnings per share | |
| Basic earnings per share is calculated by dividing the losses attributable to ordinary shareholders by the weighted average number of ordinary shares in issue. | |
| Six months ended 31 August 2009 | Year ended 28 February 2009 | Six months ended 31 August 2008 | |
| Earnings per share | |||
| Loss attributable to shareholders- continuing operations | (242,736) | (1,110,650) | (550,584) |
| Loss attributable to shareholders- discontinuing operations | - |
| - |
| No. | No. | No. | |
| Weighted average number of ordinary shares | |||
| 130,816,633 | 130,816,633 | 130,816,633 | |
| Basic loss per share (cents) - continuing operations | (0.2) | (0.8) | (0.4) |